Transcript Document

Overview of
2012 B COP Refinancing
and Debt Repayment Plan
Plumas Lake Elementary School District
November 8, 2012
Background
• During the 2012 calendar year, the
District has taken steps to address its
long term financing commitments:
– Issuance of 2012 A COPs
– Issuance of 2012 B COPs
Slide 2
2012 A COPs
• In June, the District issued 2012 A COP to:
– Refinanced 2007 Bond Anticipation Note issued by
CFD No. 1
– Fund $935,000 for the middle school site acquisition
• True Interest Cost 4.45%
• Can prepay at par on or after Sept. 1, 2022
• Final Maturity Sept. 1, 2042
Slide 3
2012 B COPs
• On November 1, the District issued $6.58 million
of 2012 B COPs to refinance the 2007 COPs
– Refunded $6,555,000
– True interest cost of less than 3.8%
– Shift maturity date from June 1, 2037 to Sept. 1, 2037
– Can prepay at par on or after Sept. 1, 2022
• Purpose of the refinance was to save money
Slide 4
COP Sizing
Total
Deposit to Escrow Fund to Refund 2007 COP
Delivery Expenses
Original Issue Discount
$6,705,571
$344,483
$7,111
$7,057,165
Less: Prior Debt Service Reserve Funds
Par Amount of Bonds
($477,165)
$6,580,000
Slide 5
The 2012 B Refinancing will Save the District
Approximately $1.9 Million over 25 Years, Approximately
$706,000 on a Net Present Value Basis
$600,000
2007 COP Debt Service
First Year Savings
of $398,000
Average Annual
Savings is $64,000
2012 B COP Debt Service
$500,000
$400,000
$300,000
$200,000
Final Year Dis-Savings
of $36,000
$100,000
$0
Slide 6
Comparison of Projected and Actual Results
Presented
September 20
Final Maturity
9/1/2037
Actual
Refinancing
9/1/2037
FY13 Savings
$390,000
$398,000
FY38 Savings
($414,000)
($36,000)
Total Debt Service
Nominal Annual Savings
Net Present Value Savings
NPV Percentage of Refunded Bonds
Difference
$8,000
$378,000
$10,547,166
$9,950,269
$50,000
$64,000
$14,000
$430,000
$706,000
$276,000
6.61%
10.78%
($596,897)
4.17%
Slide 7
After Funding Debt Service on Outstanding CFD Bonds, Excess Special Tax
Revenue Can be Applied to COP Debt Repayment. The Annual Shortfall for COP
Payments Can be Funded from Developer Fee Collections or Other Available
Revenues
$1,000,000
Fund Balance Used for Debt Service
$900,000
$800,000
$700,000
Current Capital
Cash Balance of
Approximately
$1,071,000 Can
Be Used to Make
Debt Payments
Excess Special Tax Revenue
Shortfall of
Approximately
$375,000 per Year
Combined COP Debt Service
$625,000
Shortfall
Excludes Tax
Revenue from
Future
Development
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
Fiscal Year Ending
Slide 8
Future Development Needed
to Fund Shortfall
Annual New Units Required to Cover Debt Service
Year
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
General Fund
Liability
$0
$0
$0
$0
$53,517
$387,153
$375,595
$378,600
$385,863
$376,844
Required
Annual Units
0
0
0
0
6
40
37
36
36
33
Cumulative
Units
0
0
0
0
6
46
83
119
155
188
Assumes average per unit developer fee of $9,400
District will collect annual special tax of $320/unit on permitted
property
Assumes available cash balance of $1,071,000
• New units represent minimum future development
required to fully cover debt service
• Special tax revenue from new development may
further reduce general fund liability
Slide 9
Questions?
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